News

Economy & Business

Federal Small-Business Loans Set to Run Out as Congressional Negotiations Continue

(Unsplash)

U.S. Small Business Administration loans may dry up by the end of Wednesday even as businesses seek relief from closures brought on by the coronavirus pandemic, Bloomberg has reported.

The SBA’s emergency Paycheck Protection Program was established by Congress as part of its $2.2 trillion coronavirus-relief package. The PPP allocated $349 billion for loans to small businesses, and had used up $301 billion of that sum by Wednesday. Republicans and the White House have pushed to add $251 billion more to the program. But Senate Democrats have pushed back, calling for targeted relief to minority- and women-owned companies as well as local governments and hospitals.

On Wednesday, Senate minority leader Chuck Schumer (D., N.Y.) met with Secretary of the Treasury Steve Mnuchin to attempt to make a deal, but the gulf between Republicans and Democrats on the issue remains, even as the urgency to resolve it has increased over the past week.

“Loans will STOP if funds for guarantees are exhausted no matter how much/little has been disbursed,” Senator Marco Rubio (R., Fla.) wrote on Twitter on Monday. “That’s why we need funds ASAP.”

The additional funds, if passed, will add to what has already been an unprecedented federal effort to combat the pandemic’s economic effects, as the nation’s economy reels from massive unemployment and enforced shutdowns of businesses considered nonessential.

Send a tip to the news team at NR.

Zachary Evans is a news writer for National Review Online. He is a veteran of the Israeli Defense Forces and a trained violist.

Most Popular

U.S.

A Look at the Reinfection Rate

On the menu today: unraveling those ominous claims that people can get reinfected with the coronavirus merely weeks or months after they think they’ve beaten it; the governor of Mississippi explains why he doesn’t think “herd immunity” is a realistic option, while some New York neighborhoods offer some ... Read More
U.S.

A Look at the Reinfection Rate

On the menu today: unraveling those ominous claims that people can get reinfected with the coronavirus merely weeks or months after they think they’ve beaten it; the governor of Mississippi explains why he doesn’t think “herd immunity” is a realistic option, while some New York neighborhoods offer some ... Read More
White House

Don’t Blame Fauci

The president’s relationship with Anthony Fauci, who directs the National Institute of Allergy and Infectious Diseases and has played a very public role in the country’s COVID-19 response, has gotten especially rocky. Fauci has expressed concerns about reopening and bluntly contradicted some of the ... Read More
White House

Don’t Blame Fauci

The president’s relationship with Anthony Fauci, who directs the National Institute of Allergy and Infectious Diseases and has played a very public role in the country’s COVID-19 response, has gotten especially rocky. Fauci has expressed concerns about reopening and bluntly contradicted some of the ... Read More
Media

Bari Weiss and the Malignancy at the New York Times

Bari Weiss resigned today from the New York Times, five weeks after the Times essentially forced out editorial page editor James Bennet for publishing an op-ed by Senator Tom Cotton. Bennet had hired Weiss, and his departure for allowing a U.S. Senator to advocate the use of longstanding presidential powers was a ... Read More
Media

Bari Weiss and the Malignancy at the New York Times

Bari Weiss resigned today from the New York Times, five weeks after the Times essentially forced out editorial page editor James Bennet for publishing an op-ed by Senator Tom Cotton. Bennet had hired Weiss, and his departure for allowing a U.S. Senator to advocate the use of longstanding presidential powers was a ... Read More